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linspace | 3 years ago
Everybody notices that companies could function (even better actually) with something like 1/3 or less of their workforce. The other 2/3 are just doing BS work. Why? As with evolution there is really no objective, just some causes with an outcome. One of them is that companies don't know what to do with the money. They have all this people trying to figure out what to do next. Hence the hiring freezes in some companies right now with the economic downturn.
netmonk|3 years ago
So thousands and thousands of companies are keeping alive with zero or negative profit. Those company are totally inefficient or sustainable in a normal world where you have to fight to be profitable.
So the main responsible aren’t the worker, but all the top managers who instead going bankrupt and face realistically that their companies are totally inadaptés and inefficient to generate profit, they just eat the free cake of quantitative easing that central banks are cooking every day. In this scenario, the standard worker of those company is just an incounscious partner in this con scheme and nobody ask him to be in any way profitable or efficient.
linspace|3 years ago
On the contrary I think that selective pressure is brutal. That's why everyone is trying to predict the future, because everyone knows that whatever they are doing today it's not gonna be valid in 20 years. Companies are constantly reinventing themselves, changing the way they do business. Internet has swallowed whole sectors of the economy and changed even the most traditional ones in what, 20 years?. Nobody would call you crazy if you said that in another twenty years Apple or Google have disappeared or are irrelevant.
imtringued|3 years ago
>May be because flooding market with free money called quantitative easing isn’t anymore putting selective pressure on efficiency of company.
Quantitative easing does no such thing. Educate yourself about the banking sector. Private commercial banks create money. Quantitative easing is a bandaid to maintain liquidity between banks as depositors demand ever more liquidity.
I hope you are aware that when you have a mass of people being unemployed then hiring them by no means deprives another company of a potential employees because that other company can just hire another unemployed person. When there is unemployment there is no competition over employees. It is impossible for there to be competition amongst companies. The idea that somehow free money is ruining everything shows a complete lack of understanding of even the most basic concepts of a market economy.
>Can you imagine negative interest is literally like getting paid to subscribe to a loan
People pay money to store cash in safes it is only natural that people pay money to store risk free liquidity when the real economy consists of nothing but risk and illiquidity.
>So thousands and thousands of companies are keeping alive with zero or negative profit. Those company are totally inefficient or sustainable in a normal world where you have to fight to be profitable.
Fight to be profitable over what? What constraint exists that forces companies to win a competition? A lack of employees? No. A lack of physical capital? No. A lack of energy? Maybe but there are energy producing technologies that benefit from lower cost of capital.
Again, if you have a mass of unemployed and underpaid people it doesn't matter how efficiently you use them because you are competing with unemployment, a wholly unproductive activity or underemployment which is partially unproductive.
I find it amusing that your primary concern with the economy is that profit requirements have disappeared and hence we are able to create more wealth and employ more people, you deride those things as unproductive or inefficient, as if people have to operate at peak efficiency their entire life or get eaten by the commercial bank and investor sharks as threatening people with poverty and long term unemployment is the only way to beat the laziness out of people while blaming those people for the systemic unemployment you advocate for as that allows you to call people lazy and absolve you from any responsibility.
Anyone who understands the system knows that it is wrong and no, a lack of extortion through interest is not the part that is wrong.